Answer:
Instructions are below.
Explanation:
Giving the following information:
Company - Job 62 - Job 63
Direct materials: $60,000 - $4,500 - $7,100
Direct labor: $25,000 - $2,500 - $4,200
overhead costs $72,000
Machine hours: 90,000 - 1,350 - 3,100
During 2019, the actual machine-hours totaled 95,000, and actual overhead costs were $71,000. Job 62 consisting of 1,000 units and Job 63 consisting of 2000 units were completed during the month.
A) To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 72,000/90,000
Estimated manufacturing overhead rate= 0.8 per machine-hour
B) Total manufacturing cost= direct material + direct labor + allocated overhead
Job 62:
Total manufacturing cost= 4,500 + 2,500 + 0.8*1,350
Total manufacturing cost= $8,080
Job 63:
Total manufacturing cost= 7,100 + 4,200 + 0.8*3,100
Total manufacturing cost= $13,780
C) Unitary cost= total cost/ number of units
Job 62:
Unitary cost= 8,080/1,000= $8.08
Job 63:
Unitary cost= 13,780/2,000= $6.89
D) First, we need to apply overhead for the company as a whole:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.8*95,000
Allocated MOH= $76,000
Now, we can calculate the over/under applied overhead:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 71,000 - 76,000
Overapplied overhead= $5,000
E) Job 62= 14,000
Job 63= 18,000
Gross profit= sales - cost of goods sold
Job 62:
Gross profit= 14,000 - 8,080= $5,920
Job 63:
Gross profit= 18,000 - 13,780= $4,220
